VAT Is Reduced By 2% For Certain Goods And Services From 01 July
On June 30, 2025, National Assembly Chairman Trần Thanh Mẫn signed Resolution No. 204/2025/QH15 on reducing VAT, effective from July 1, 2025, to December 31, 2026. The resolution reduces the VAT rate by 2% (from 10% to 8%) for goods and services listed under Clause 3, Article 9 of the VAT Law No. 48/2024/QH15. Excluded from this reduction are telecommunications, financial activities, banking, securities, insurance, real estate, metal products, mining products (except coal), and goods/services subject to special consumption tax (except gasoline).
Key points from Article 9, VAT Law No. 48/2024/QH15:
- 0% VAT rate applies to: Exported goods consumed abroad or in non-tariff zones for export production; Exported services consumed abroad or in non-tariff zones for export production; International transport, aircraft/maritime services, digital content for foreign use, and spare parts for foreign repairs; Exclusions: technology transfers, intellectual property transfers, reinsurance, credit provision, capital transfers, derivatives, postal/telecom services, tobacco, alcohol, and certain vehicles sold in non-tariff zones.
- 5% VAT rate applies to: Fertilizers, pesticides, and livestock growth stimulants; Agricultural services (irrigation, pest control, preliminary processing); Unprocessed or minimally processed agricultural, livestock, and fishery products; Offshore fishing vessels and agricultural machinery; Medical equipment, medicines, and raw materials for pharmaceuticals; Educational tools (models, charts, rulers, compasses); Social housing sales, leasing, or lease-purchase,…
- 10% VAT rate applies to goods/services not listed in above, including services provided by foreign suppliers without a permanent establishment in Vietnam via e-commerce or digital platforms.
The resolution aims to ease economic burdens and stimulate consumption.
